Maiden Mineral Resource Statement at Kamativi Tailings Lithium Project Shows: Indicated Resource 26,320,000 tonnes at 0.58% Li2O

Table 1 Kamativi Tailings Lithium Project Mineral Resource for the Total Tailings, 10 September 2018

Category

Tonnes

Density

Li₂O

SnO₂

Ta₂O₅

Fe₂O₃

Nb₂O₅

(Millions)

t/m³

%

ppm

ppm

(%)

(ppm)

Indicated

26.32

1.67

0.58

493

41

1.22

65

Inferred

0.30

1.67

0.62

544

45

1.45

62

Table 1 Kamativi Lithium Tailings Mineral Resource for the Total Tailings Dump, 10 September 2018

Category

Tonnes

Density

Li₂O

SnO₂

Ta₂O₅

Fe₂O₃

Nb₂O₅

(Millions)

t/m³

(%)

ppm

ppm

(%)

(ppm)

Indicated

26.32

1.67

0.58

493

41

1.22

65

Inferred

0.30

1.67

0.62

544

45

1.45

62

Table 2 Kamativi Lithium Tailings Indicated Mineral Resource Grade-Tonnage Table, 10 September 2018

Cut Off

Tonnes

Density

Li₂O

SnO₂

Ta₂O₅

Fe₂O₃

Nb₂O₅

Li₂O (ppm)

(Millions)

t/m³

(%)

(ppm)

(ppm)

(%)

(ppm)

2,000

26.32

1.67

0.58

493

41

1.22

65

2,500

26.27

1.67

0.58

493

40

1.22

65

3,000

25.93

1.67

0.59

493

40

1.21

65

3,500

24.65

1.67

0.60

495

40

1.21

64

4,000

22.75

1.67

0.62

499

39

1.21

62

4,500

20.33

1.67

0.64

502

38

1.22

61

5,000

17.53

1.67

0.67

505

37

1.22

59

5,500

14.63

1.67

0.70

508

36

1.22

58

6,000

11.72

1.67

0.73

508

34

1.22

56

6,500

9.11

1.67

0.76

506

33

1.21

55

7,000

6.75

1.67

0.78

503

32

1.20

53

7,500

4.10

1.67

0.82

497

32

1.19

52

8,000

2.57

1.67

0.85

498

32

1.19

52

8,500

0.98

1.67

0.90

496

32

1.18

52

9,000

0.43

1.67

0.93

505

31

1.18

53

9,500

0.11

1.67

0.96

534

29

1.16

53

10,000

0.00

1.67

1.02

625

35

1.12

60

Table 3 Kamativi Lithium Tailings Inferred Mineral Resource Grade-Tonnage Table, 10 September 2018

Cut Off

Tonnes

Density

Li₂O

SnO₂

Ta₂O₅

Fe₂O₃

Nb₂O₅

Li₂O (ppm)

(Millions)

t/m³

(%)

(ppm)

(ppm)

(%)

(ppm)

3,500

0.30

1.67

0.62

544

45

1.45

62

4,000

0.30

1.67

0.62

544

45

1.45

62

4,500

0.29

1.67

0.62

548

45

1.46

62

5,000

0.26

1.67

0.64

553

45

1.47

62

5,500

0.21

1.67

0.67

556

46

1.48

61

6,000

0.15

1.67

0.70

545

47

1.44

60

6,500

0.12

1.67

0.71

534

46

1.42

59

7,000

0.07

1.67

0.75

525

46

1.39

58

7,500

0.03

1.67

0.77

487

43

1.26

57

8,000

0.00

1.67

0.80

451

39

1.16

54

Drilling techniques

The drilling was undertaken by independent drilling contractors and managed by MSA. Two drilling methods were employed at the Kamativi Lithium Tailings, namely a core drilling method and an auger drilling method. The core drilling was carried out using a combination of bit sizes with internal diameters of 60 mm, 76 mm and 105 mm. The auger method was drilled with an internal diameter of 42 mm. Drill runs of 1.5 m were used.

Logging

All drill holes were geologically logged by qualified geologists. The logging was of an appropriate standard for Mineral Resource estimation.

Drill sample recovery

Recovery was acceptable (average 86.2%) for the auger method for this type of deposit. Although the recoveries were lower for the coring method (average 70%), no biases to the sample grade were apparent

Sampling methods

All the material from each drill run was collected, bagged and sealed on site.

Samples were kept on site until inspected and signed off by the Zimbabwe Ministry of Mines and then transported to a storage depot until the end of the drilling programme, after which, the samples were couriered to SGS Randfontein for assaying.

Mr M Cronwright of MSA observed the sampling procedure during the site visit and it was considered to be acceptable.

Quality of assay data and laboratory tests

All samples were sent to SGS Randfontein for sample preparation and assay. SGS Randfontein is accredited by SANAS (South African National Standard) and conforms to the requirements of ISO/IEC 17025. Mr M. Cronwright of MSA undertook a laboratory audit at SGS Randfontein in order to observe the preparation and analytical processes for the Kamativi samples.

Check assay samples were sent to the ALS laboratory, in Vancouver, for second laboratory verification assay. The ALS laboratory in Vancouver is also ISO/IEC 17025 accredited. The check assay samples were assayed by sodium peroxide fusion with an inductively coupled plasma – optical emission spectrometry finish.

At SGS, samples were dried; thereafter 3 m composite samples were created by combining equal masses of material from two successive 1.5 m samples. The laboratory prepared a composite duplicate to check that the compositing process was appropriate. The composite samples were then pulverised to 85% passing 75 microns in a carbon steel ring and puck pulveriser. A 0.2g aliquot was collected for assay. The laboratory collected pulp duplicates from the routine samples to assess the appropriateness of the sub-sampling process.

The assay methods that were employed by SGS included a sodium peroxide fusion with an inductively coupled plasma – optical emission spectrometry finish for the analyses of Li and Fe as well as Al, Ba, Ca, Cr, Cu, K, Mg, Mn, P, S, Si, Sr, Ti, V and Zn. This method has a lower detection limit of 10 ppm. Sodium peroxide fusion, with an inductively coupled plasma – mass spectrometry finish was used for assaying for Ta, Sn and Nb, as well as, Be, Bi, Cd, Ce, Co, Cs, Dy, Er, Eu, Ga, Gd, Ge, Ho, In, La, Lu, Mo, Nd, Ni, Pb, Pr, Rb, Sb, Sc, Sm, Tb, Th, Tl, Tm, U, W and Y. This method has a lower detection limit of 1 ppm. QC samples, including samples of two certified reference materials, blanks and duplicates, were routinely inserted as part of an independent QAQC process. The CRM and blank samples were inserted by MSA, while the composite and pulp duplicates were inserted by the laboratory’s preparation facility. As an additional check, 6% of the samples analysed at SGS were assayed by ALS Vancouver.

The QAQC measures revealed the following:

• No assays plotted outside three standard deviations of the certified mean Li value of AMIS0338, which is a low grade (1,742 ppm Li) CRM. The average Li assays of this CRM showed a relative difference of 7% higher than the certified mean. The accuracy of the Li assays of AMIS0338 were considered to be of acceptable accuracy. A total of four Li assays out of 28 for the high grade AMIS0341 CRM (5,041 ppm Li) plotted outside of three standard deviations from the certified mean value of the CRM. The average Li assays of this CRM showed no bias.
• Blank sample assays indicate that no significant contamination occurred during the programme.
• Duplicate assays within SGS demonstrate precision levels are within reasonably expected ranges.
• Lithium assays of the CRMs included with the second laboratory check assays were within two standard deviations of the certified mean value.
• The second laboratory check assays for lithium were on average 6% lower than the primary laboratory assay and the tin assays were 8% higher.
• The QP is satisfied that the assays are of sufficient quality for use in Mineral Resource estimation.

Verification of sampling and assaying

MSA was responsible for managing the drilling programme, and Mr Cronwright observed the drilling and sampling process during the site visit. Seven holes that were initially drilled with the coring method were twinned by auger drilling. The analyses of the twinned holes showed that the core samples have a higher-grade variability than the auger samples but found the mean grades of the two drilling methods to be similar and show no significant bias. In the QP’s opinion, the results of both drilling methods are appropriate to use in Mineral Resource estimation.

Location of data points

All drill hole collars and the topography, including the top of the dump as well as the boundary of the dump, were surveyed by a qualified surveyor, Mr Grabwell Fundira. The surveys were undertaken in the geodetic system of UTM Zambia Arc 1950 zone 35K.

Tonnage factors (in situ bulk densities)

A total of 60 pits were excavated at different locations over the dump to create positions for density samples. Density samples were taken at 1 m intervals from close to surface, below the loose material, to up to 6 m depth. The density samples were taken by inserting an open sided steel block with a dimension of 10 cm by10 cm by10 cm into the sidewall of the pit. The material retrieved from inside the steel block was dried and weighed to calculate a dry bulk density. A total of 214 density measurements were taken, which have an average density of 1.67 t/m³. This average density was applied throughout the dump to convert volume into tonnes.

Data density and distribution

A total of 115 vertical holes were drilled. The holes were drilled on a 100 m spaced grid orientated northwest in line with the orientation of the dump.

Database integrity

The Kamativi data is stored in an MS-Access database, managed by MSA.

Dimensions

The Kamativi tailings dump is approximately 1,900 m northwest to southeast and 580 m northeast to southwest with a maximum depth of 39 m. The total volume is approximately 16,000,000 m³.

Geological interpretation

The dump is a man-made deposit of tailings sourced from the historical Kamativi Tin Mine. The dump and below the dump intersections were clearly discernible and were logged.

The volume of the dump was defined by surfaces representing the top and bottom of the dump. The top of the dump surface was based on surveyed points on top of the dump and around the boundary of the dump as well as drill hole collar surveys. The surface representing the bottom of the dump was based on drill hole intersections of the base as well as survey points of the boundary of the dump. Not all of the drill holes penetrated the base of the dump. An additional surface was modelled representing the base of the drilling. There was one area below this surface that is considered to have lower confidence where the base of the dump has been extrapolated from short holes.

Domains

The tailings were estimated as a single domain.

Compositing

The 1.5 m drill sample lengths were composited to 3 m. Sample lengths less than 1.5m were discarded. The discarded sample lengths had a similar mean grade as the rest of the composite samples, therefore no bias was introduced.

Statistics and variography

Li₂O distribution is slightly positively skewed with coefficients of variation (CV) of approximately 0.34. The distribution indicates two populations. The relatively low Li₂O grades occur in the northern and southern-most part of the dump, while the middle of the dump has relatively high grades. The higher-grade population transitions into the low-grade areas and therefore they were not treated as separate estimation domains.

SnO₂, Ta₂O₅, Fe₂O₃ and Nb₂O₅ distributions are positively skewed with CVs of approximately 0.30, 0.53, 0.27 and 0.29 respectively. All distributions show a single population except for Nb₂O₅. The correlations between the variables are poor.

The density distribution is negatively skewed and do not exhibit a well-defined single population. The deeper samples have the highest density.

Variograms were calculated in the horizontal plane since the tailings were deposited and settled horizontally. Variograms were modelled for Li₂O, SnO₂, Ta₂O₅, and Nb₂O₅ with isotropic ranges of between 200 m and 500 m in the horizontal plane and a short-ranges of between 20 m and 36 m vertically.  The Fe₂O₃ variogram was modelled with a major direction at 030/00 and a range of 330 m, the semi-major direction at 120/00 has a range of 180 m and the minor direction in the vertical has a range of 32 m.

Top or bottom cuts for grades

Top cuts were not applied to the composite grades of any variables, as no outliers were observed.

Data clustering

The holes were drilled on a regular 100 m grid, with closer spaced drilling between a few holes in the high-grade area to the south eastern part of the dump. The drill hole spacing in this area was observed down to 25 m.

Block size

A block model of 50 m N by 50 m E by 3 m RL was created with a minimum sub-cell of 5 m N by 5 m E by 1 m RL.

Grade estimation

Grades were estimated using ordinary kriging into parent cells.

A minimum number of 4 and a maximum of 12 three metre composites were required to estimate each variable in a single block. An elliptical search of 100 m x 100 m in the horizontal plane and 5 m in the vertical plane was used to select samples to estimate each block. The search was increased by 1.5 times the original search distance where enough samples for estimation were not found by the first search. A search of 10 times the first search was used to ensure that the entire model was estimated.

Resource Classification

In classifying the Mineral Resource, the main considerations were as follows:

• The drill spacing is sufficient to estimate grades and model the dump framework to a reasonable degree of confidence.
• There is acceptable confidence in the accuracy and integrity of the Kamativi data.
• Two types of drilling were generally used in separate areas, except where twin drilling was undertaken. Comparison of the twinned holes (core and auger) showed that there is no bias between the two methods.
• The surfaces used to define the dump are based on measured data, except for the extrapolated bottom of dump surface. Where drilling continued to the base of the dump the dump model is of high confidence.

The Mineral Resource was classified as Indicated from the top of the dump to the bottom surface of the drill hole intersections and Inferred in an area where the bottom of dump was extrapolated from short holes that did not penetrate the base of the dump.

Mining Cuts

No mining cuts were considered in the estimate. The dimension and shape of the dump and the unconsolidated nature of the material makes it amenable to low-cost bulk mining methods.

Metallurgical factors or assumptions

Preliminary mineral processing and metallurgical test work indicates that a concentrate of a commercially acceptable specification can be produced. Deleterious estimates are included in the block model.

Legal Aspects and Tenure

The Kamativi Project is a joint venture (“JV”) between the Zimbabwe Mining Development Corporation (“ZMDC”), owners of Kamativi Tin Mines which holds 40 % of the Project, and Jimbata, which holds 60 %. A JV Agreement was entered into between Lintmar (Private) Limited (“Lintmar”) and ZMDC on 2 February 2018. A letter from Jimbata, dated 16 February 2018 confirms the cession by Lintmar of its rights and interests in the Kamativi Mine Tailings Dump to Jimbata, including all aspects of the JV Agreement with ZMDC.

The JV Company (Jimbata (60%) and Kamativi Tin Mines (40%), Kamativi Tailings Company (Pvt) Limited, was incorporated on 16 February 2018 as per the Companies Act [Chapter 24:03] of Zimbabwe.

Audits, reviews and site inspection

The following review work was completed by MSA:

• Michael Cronwright of the MSA Group and one of the Qualified Persons for this Mineral Resource visited the project from the 7^th to 8^th of August 2017 and again from the 23^rd to the 24^th April 2018, in order to review the exploration processes and the collection of information for Mineral Resource Statement.

No external reviews have been completed.